Rockford man linked to health care fraud scheme

ROCKFORD — A Rockford man was one of three people indicted today on federal charges for their alleged roles in a $12 million health care fraud scheme.

FBI agents and other law enforcement officials had guns drawn when they surrounded a home this morning in the 100 block of Guard Street and arrested the home’s occupant, Rick E. Brown.

Brown, 56, and two other defendants operated or were employed by a Schaumburg-based home visiting physician practice, Medicall Physicians Group, Ltd., that allegedly billed Medicare for patient services that were never provided. The defendants, according to a U.S. State’s Attorney’s Office news release, fraudulently obtained about $4.7 million in Medicare payments from January 2007 to December 2011.

A 10-count indictment that was returned by a federal grand jury last Wednesday was unsealed today following the arrest of Brown, the president of Home Care America, Inc., which controlled the daily operations of Medicall. Brown pleaded not guilty and was released on a $10,000 unsecured bond at his arraignment today before U.S. Magistrate Judge Mary Rowland in Federal Court in Chicago.

Also indicted were Dr. Roger A. Lucero, 62, of Elmhurst, a physician and the medical director of Medicall, and Mary C. Talaga, 53, of Elmwood Park, a Medicall and Home Care America employee who submitted claims to Medicare on behalf of Medicall and the medical professionals who were employed by Medicall. Lucero and Talaga were not arrested and will be arraigned on dates yet to be determined.

Brown and Lucero were each charged with one count of conspiracy to commit health care fraud and multiple counts of health care fraud. All three defendants were charged with three counts each of making false statements relating to health care matters. The indictment also seeks forfeiture of more than $4.49 million from Brown and Lucero.

According to the indictment, Brown and Lucero operated Medicall, and Talaga submitted the company’s bills to Medicare, totaling more than $12 million. Brown instructed employees to bill Medicare for patient oversight and other services that were never provided, and Lucero created backdated records in an effort to conceal the fraudulent billings, the indictment alleges. Talaga allegedly billed Medicare for these services, even though she knew they were not documented, a practice that required her to fabricate the information submitted to Medicare.

Health care fraud conspiracy and each count of health care fraud each carry a maximum penalty of 10 years in prison and a $250,000 fine. Each count of making false statements relating to health care matters carries a maximum penalty of five years in prison and a $250,000 fine. If convicted, restitution is mandatory.

The investigation was conducted jointly by the FBI and the U.S. Department of Health and Human Services Office of Inspector General and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office. The case is being prosecuted by Trial Attorney Brooke Harper of the Criminal Division’s Fraud Section.